Premier has announced a strategic tie-up with PSigma Asset Management and former Credit Suisse income guru Bill Mott, whose team will act as investment adviser for the income range. The deal, which is subject to regulatory and Premier shareholder approval, will see over £850m of assets under management pass to Premier.
Hargreaves Lansdown head of research Mark Dampier says that although he is happy with the destination of the £630m income franchise to PSigma, the treatment of unitholders in the past couple of years has been questionable.
He says: “It seems that despite paying the salaries, unitholders are way down the list of priorities. Credit Suisse has seen turbulent times on those funds and after appointing a strong manager in Graham Ashby, they get sold to Aberdeen, who it appears had no intention of keeping those assets, meaning they return to the person they began with in Bill Mott.”
Chelsea Financial Services managing director Darius McDermott says: “It has been an utterly convoluted process that has been frustrating for those investors in the income funds. At least the move full circle has seen them end up in responsible hands.”
Skerritt Consultants head of investments Andy Merricks says: “I suppose the question investors should ask is, should they stick with an investment firm when it is struggling? Perhaps there is too much lethargy in terms of switching out of funds. I would expect PSigma not to run them too differently from their existing funds.”
PSigma managing director Ian Chimes says: “Neil Cummings will be the named manager of the growth fund, with the remainder run as a team in line with Bill Mott’s top-down view.”